LDO, the native token of leading Ethereum staking provider Lido DAO, has witnessed an 8% price hike over the past 24 hours. Trading volume has also jumped by 58% during the review period, reflecting the surge in activity around the altcoin. 

However, the past 24 hours have been marked by a significant dip in LDO’s open interest. This suggests that some futures traders may be taking profits after recent gains.

LDO’s rally over the past 24 hours has been fueled by a notable surge in demand during this period. According to IntoTheBlock, 891 unique addresses completed at least one LDO transaction on Monday, marking its highest single-day count since February 2023.

When a surge in daily active addresses accompanies a price hike, it signals increased network activity and user engagement. This suggests that the price rally is driven by genuine demand for the asset rather than speculative trading. 

Notably, today, LDO’s trading volume across cryptocurrency exchanges has totaled $670 million. Per DefiLlama’s data, this represents its all-time high since the ETH-staking protocol was launched.

However, LDO’s 8% uptick has been accompanied by a significant dip in its open interest. Per Santiment’s data, this stands at $52 million at press time, declining by 50% over the past 24 hours. This reflects a hike in profit-taking among the token’s futures traders following the price jump. 

Open interest tracks the total number of outstanding futures or options market contracts that have not yet been settled or closed. When it decreases during a price rally, traders who had previously bought the asset have decided to exit their positions and lock in profits. When these positions are closed, the total number of outstanding contracts decreases, even if the price continues to climb.

On the daily chart, LDO’s 8% rally has pushed it above a descending channel, which it had traded within since January. This pattern is formed when an asset’s price trades within two downward-sloping trendlines, indicating a downtrend. 

When the price breaks above the upper trendline of the descending channel, it signals a potential shift in market sentiment, indicating a reversal of the downtrend. This breakout suggests increased bullish momentum, as buyers may be gaining control and pushing the price higher.

If LDO’s buying pressure strengthens, its price may climb to $2.09, a level last reached in August. On the other hand, if selling pressure gains momentum, LDO’s price will shed recent gains and fall to $1.08 if the $1.56 support level fails to hold.

The post LDO’s 8% Surge Can’t Halt $53 Million Exit from Futures Market appeared first on BeInCrypto.

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